Boardroom breaks down how Roger Federer’s investment in On helped him become a billionaire and propelled the company to new heights.
Roger Federer recently joined the billionaires club, according to Forbes, in large part because of a shoe that’s become a ubiquitous staple in tennis as we tune in to the U.S. Open. And it all started, oddly enough, because one of the famous companies in the world wanted to pay him less than he was worth.
In 2018, Nike wanted to reduce Federer’s endorsement salary, despite making him a signature cornerstone athlete alongside Michael Jordan, LeBron James, and Tiger Woods. The RF logo was everywhere in tennis circles, the royal crest of sorts for one of the most beloved and regal athletes we’ve ever seen. That decision led the Swiss legend and 20-time Grand Slam singles champion to leave Nike and sign a groundbreaking 10-year, $300 million apparel deal with Uniqlo.
But since Uniqlo wasn’t selling shoes, Federer was free to seek out a footwear sponsor and double-dip on his endorsements. Down the road from his home in Zurich, an upstart running shoe company called On, which he and his wife Mirka wore, was emerging as a market share leader in Europe. It was founded in 2010 in Switzerland by a trio of entrepreneurs who wanted to make footwear that felt like running on clouds.
On reportedly approached Federer about a deal, which led Roger to invest $50 million in 2019 for a 3% stake in the company. At the time, co-founder Olivier Bernhard said the investment was “not traditional athlete sponsorship.” The deal also included Federer designing a line of tennis-inspired lifestyle sneakers called The Roger, giving the brand its first major boost outside traditional running shoes.
As the company continued to build momentum following Federer’s investment and its growing reputation, On went public with an initial public offering in 2021, valuing the company at $11 billion. That meant Roger’s big bet on the company officially made him more money than his $131 million in career earnings ever did. Fast-forward four years, and Federer’s stake in On Holdings is now worth nearly $500 million as the company’s market cap sits at roughly $15 billion.
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On has gone even further into tennis since Federer helped design and launch his eponymous lifestyle collection, signing star players like Ben Shelton, Iga Światek, and João Fonseca to endorsement deals. It’s even evolved from sports, with celebrities like Drake now regularly posting about the brand, and numerous luxury collaborations with the likes of Zendaya and Law Roach, Spanish house Loewe, Japanese brand Beams, and FKA Twigs.
On Holdings is now a force to be reckoned with in footwear, be it in tennis, lifestyle, or luxury. And it all started with Roger Federer serving and rallying the brand to new heights, helping him join the exclusive club of billionaire athletes in the process.
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